13 Best Stocks to Buy for the Next Stock Market Correction

The stock market has been shaken in recent days by an escalation of the trade battle with China, as well as a Federal Reserve move to lower benchmark interest rates for the first time since 2008 – but not by as much as some on Wall Street hoped.

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The stock market has been shaken in recent days by an escalation of the trade battle with China, as well as a Federal Reserve move to lower benchmark interest rates for the first time since 2008 – but not by as much as some on Wall Street hoped. But even after heavy selling, Standard & Poor’s 500-stock index remains just a few percent off all-time highs.

Is this the start of a long-awaited stock market correction? Possibly. But rather than trying to gauge exactly when a correction is coming or what will spark it, a better plan is to simply prepare. That is, you can shift the composition of your portfolio so it can better weather a storm – but still profit as long as the bull keeps running.

A more defensive posture does have drawbacks; nothing is free. The biggest problem is being underweight the stocks that are still driving the market higher. But for investors who do think a correction is coming and don’t want to play the losing game of trying to time the market, we’ve asked a group of investment managers and other experts which stocks they expect to hold up should the market pull back.

Here are 13 of the best stocks to buy to ride out a stock market correction. Most of these revolve around the idea of investing in high-quality companies that have good cash flows and business health, boasting pricing power and stable customer demand. This includes consumer staples stocks that sell products and services that people cannot live without. A couple will help raise your exposure to gold, which is emerging from a multiyear slumber.

Data is as of Aug. 1.

Michael Kahn
Contributing Writer, Kiplinger.com
Michael Kahn, CMT (Chartered Market Technician) has been writing about the markets since 1986. He is the author of three books on technical analysis published in five languages. His specialty: jargon-free analysis accessible to everyone. He has contributed to many leading financial media including Barron's Online, MarketWatch and Nightly Business Report and was the Chief Technical Analyst for BridgeNews.